Chinese companies purge the foreign parts supply chain in the middle of the United States trade war

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Chinese companies are accelerating a purge of foreign components of their supply chains, as commercial tensions with the United States threaten to precipitate the decoupling between the two largest economies in the world.

In the weeks since President Donald Trump collided China With steep rates, more than two dozens of companies in Shanghai and Shenzhen have told investors that they increase their efforts to lead to national contributions to replace foreign products or are expected to benefit as their colleagues would locate the purchase.

The financial companies, reviewed by The Financial Times, were issued by companies that cover the sectors of semiconductors, chemicals and medical devices. Demonstrate the potential Trump’s lasting impact War of trade Doing a permanent rearrangement of supply chains.

Beijing has been promoting industrial self -sufficiency for some time with the policies called in China 2025 and the “double circulation” strategy of President Xi Jinping, which aims to strengthen economic independence by maintaining the selective links world.

This impulse had been overwhelmed by Trump’s rates, which have created a more boost for Chinese companies to try to isolate the geopolitical coup, as well as the Beijing retaining rates for United States imports, which are Up to 125 percent.

The rates would only increase Beijing’s desire for Chinese companies to be more self -sufficient, said Camille Bouullenois, an analyst of the Rhodium group and author of a recent report on the Made in China 2025 program. “They clearly feel the urgency,” he added. “This will tell them to speed up as much as possible.,

People who knew the thinking of Chinese officials said that Beijing considered the commercial conflict as a validation of their self -confidence policies. Added that officials thought they had these initiatives China equipped at the time The last wave of US pressure.

“They believe that China can now survive with nothing in the United States or the West and has given the country the strength to withstand Trump’s trade demands,” said one of the people.

Estun Automation, one of the leading manufacturers of industrial robots in China, told investors in their annual report last month that “rapidly capturing the main clients who had foreign brands before”, as well as optimizing their own supply chain to “increase the domestic replacement of raw materials.”

The increase in location “reduces costs,” said a company manager. “(Is not) only the trade war: the whole global economy is unstable. We want power and prepare (suppliers),” they said.

State Emergency Team Manufacturer, China Harzone Industry Corp, told investors last month that, while he had been “vigorously promoting domestic replacement” for years, in response to rates, he would increase his part of local suppliers to replace the handful of components they still provided with North America.

The company added that it would also develop a double circulation model focused on exports to Southeast Asia, Africa and South America.

Some analysts have argued that the Made in China 2025 plan, which was launched in 2015, helped to provoke the trade war During Trump’s first term, setting explicit goals for domestic companies to dominate strategic sectors.

A recent report from the EU Chamber of Commerce in China said that politics had been successful in industries such as electric vehicles, naval construction and railway equipment, where Chinese manufacturing now directs, but warned that it had also encouraged investment and inefficient overload in some sectors and decreased tensions with commercial partners.

China reinforced push to prioritize domestic supply could also affect providers in third countries.

Thinkon semiconductor, a bond -based silicon material supplier, told investors that he would cut foreign suppliers to “promote risk resilience.” A company manager said he did not import North -American products and was working to replace the chemical reagents of Japan, South Korea and Europe.

“To avoid more risks, we will continue to move our location efforts,” the person said, asking that he were not named.

Estun automation and Thinkon’s semiconductor did not respond to comments applications.

Va Zhixing, who works in the corporate affairs of Hunan Sundology Corp in the central province of Hunan, said that China’s retaliation rates led the manufacturers to leave the North -Americans used in steam and gas turbines.

“They are approaching us, asking us, asking for the production of ramps,” he said.

“Right now, everyone talks about substitution,” he added. In the long term, he predicted, many customers would change for better. “It will be a gradual replacement process.”